Navigating trade-offs in the global economy: A framework for a world between orders

A US-China trade war, and a new US universal tariff of 10 per cent on imported goods from nearly all countries, have caused widespread disarray. Moreover, the global economy was already fragile after a series of major supply-chain disruptions caused by the Covid-19 pandemic and the Russian invasion of Ukraine. 

Policymakers are faced with a head-spinning array of geopolitical challenges, and this is a strikingly different economic landscape compared to the last time a Labour government was in power. 

In this report we argue that, in this unpredictable context, the UK government will now be forced to make difficult choices between competing objectives for international economic policymaking. We also explore how the government should navigate the different trade-offs.